Tag Archives: IDA Ireland

How important will China and knowledge of China be in Ireland’s future?

Encouraged by captains of Irish industry, who should know better, Opposition politicians with an agenda, and armchair critics within the tabloid and online media, a degree of pessimism appears to be growing among Ireland‘s small to medium (SME) sized business sector regarding the ‘risk versus reward’ futility of getting involved in China business. More mature markets in EU and the USA are being represented as offering more scope to grow for Irish SMEs with the right value proposition.

Irish businesses no matter what their size cannot afford to be pessimistic about China and here is why.

“…China’s transformation is one of the defining facts of our lifetime. Last year China became the world’s largest trading nation. Next year China is set to become the world’s largest importer of goods and later this century it will become the world’s biggest economy.

We should be clear that there is a genuine choice for every country over how to respond to this growing openness and success. They can choose to see China’s rise as a threat or an opportunity. They can protect their markets from China or open their markets to China. They can try and shut China out – or welcome China as a partner at the top table of global affairs..”

Source: http://www.theguardian.com/commentisfree/2013/dec/02/david-cameron-my-visit-to-china

The British Prime Minister Mr. David Cameron, on the eve of his second official visit, in an article published this week in Caixin (pronounced ‘sigh sheen‘), China’s financial news heavyweight, couldn’t have been more explicit about China’s growing importance.

Accurate China Insight - How important will China and knowledge of China be in Irelands future

Most China watchers will agree that – largest, longest, fastest, biggest, greatest, tallest superlatives aside- China is still in the very early stages of its re-emergence: Get in on the ground floor now and potentially be in the happy position of earning revenue hand over fist.

Sure China is no cake walk. At the beginning, building a China market presence from scratch involves hassles, stumbles, issues, errors, problems, stresses and utter confusion.  Yet, isn’t that what getting in at the beginning of any start-up business or market looks like? The only way to WIN is through hard work, support, communication, committment, patience, and understanding that there will be many instances of having to deal with a lot of confusion. Similar to a start-up company, these are the learning steps that must be taken to break new ground and grow a viable market presence in China.  

In a start-up there also comes a point when the challenges start to be overcome and things begin to gel together. And so to in insatiable China where the surmounting of challenges and barriers or difficulties will open the way to doing fantastic things and improving on a daily basis faster than would have happened in more traditional, mature, markets. 

With certain senior business executives and media in Ireland advocating a niche market approach for SMEs with respect to China [“China is a … slow burn” (Mr. Sean O’Driscoll, CEO Glen Dimplex); “More fortunes have been lost than made by getting in too early,” (Liam O’Mahony, Chairman, IDA Ireland) “Putting Mandarin on the school curriculum is a typical proposal from armchair ‘experts’ who have no experience of the challenges of selling in China – – 1.3bn consumers and all we need is a very tiny slice of the pie!” (Michael Hennigan, Editor of Finfacts.ie)] the crux of this Accurate China Insight is to draw attention to the fact that almost all of Accurate Group’s Irish clients, no matter what size, doing business in China or with China succeed at it, while the vast majority of European and American companies in China are flourishing.

Moreover, we do not share the view that China is a particularly risky market for foreign companies. Like any foreign market with a unique language, business culture, and legal system something can go wrong. However, despite the challenges China remains, will continue to remain a very profitable place to do business, which is really what matters most for Irish businesses.

Returning to David Cameron:

China is at a defining moment. It has just announced bold reforms that show real ambition to free its markets and open them up to foreign participation…

As Chinese cities expand dramatically and Chinese people become more prosperous, Britain has the world-class goods and services they need…

Building on the recent launch of EU-China negotiations on investment, and on China’s continued commitment to economic reform, I now want to set a new long-term goal of an ambitious and comprehensive EU-China Free Trade Agreement. And as I have on the EU-US deal, so I will put my full political weight behind such a deal that could be worth tens of billions of dollars every year…

We should recognise that China’s economic transformation is happening at 100 times the scale and 10 times the speed of Britain’s own urbanisation two centuries ago. In the last 30 years, China has made unprecedented social and economic achievements. The recent meeting of China’s leaders – the Third Plenum – has now set a clear goal: comprehensive reform, including issues such as governance and the judicial protection of human rights, and recognising that all types of reform are inextricably linked. The promise is of an economy with a more predictable legal environment and with stricter enforcement of protection for intellectual property rights…

The fact is that businesses thrive in a stable, secure and corruption-free environment that limits the risk of shock, provides certainty of dispute resolution and offers protection of capital and intellectual assets. These conditions are good for growth in China…

Source: http://www.theguardian.com/commentisfree/2013/dec/02/david-cameron-my-visit-to-china

And therein lies the rub for all Irish businesses. For our closest neighbour China is now at the core of its international trade relations. With the Chinese Yuan surpassing the Euro to become the second-most used currency in global trade (Source: http://www.bloomberg.com/news/2013-12-03/yuan-passes-euro-to-be-second-most-used-trade-finance-currency.html, China, the number one retail growth opportunity in the world (Source: http://yum.com/annualreport/), is where it is happening NOW. Moreover,  the best has yet to come! 

Ireland’s SME’s should be able to determine a new China business model that suits their situation. Top management and business owners who are destructively determined to succeed by increasing efforts to ‘do more of the same better’ in their traditional markets and ignore the potential of China are going to lose out in the medium and long term.

Irish businesses across the board need to intensify efforts to tap the China market otherwise they will be left behind.

Accurate China Insight - How important will China and knowledge of China be in Irelands future 2

Source: Accurate China Insight http://accuratelimited.com/blog.view.php?id=SreDdexWHkE=

Niall O’Reilly

Managing Director, Accurate Group Ireland China Market Makers (Route to Market, Export, Import, Partner Due Diligence)

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

China Office : Accurate Group China, Hangzhou – O: +86 571 8709 1253

Ireland Office: Accurate Ireland, Dublin – O: +353-1271-1830

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December 3, 2013 · 10:28 am

Accurate China Insight: Ireland’s Presidency of the Council of The European Union to further enhance Chinese ties

Commencing in January, for the first half of 2013, Ireland‘s Presidency of the Council of The European Union provides a fantastic opportunity for Ireland to yet again punch above its weight in the eyes of China‘s leaders and media.

Ireland's Presidency of the Council of The European Union to further enhance Chinese ties

Moreover, EU-China -related summits in Ireland will provide Europeans with their first real chance to measure the mind-set of China‘s new leadership towards its biggest trading partner.

Hopefully the relevant agencies Tourism Ireland, Bord Bia, Enterprise Ireland, Industrial Development Authority of Ireland (IDA), etc., have given due consideration to the huge marketing potential this unique six month long occurrence offers.

Following on from a very successful trip to Ireland in February 2012 by the incumbent General Secretary of the Communist Party of China, China’s paramount leader Xi JinPing, expect an enduring stream of visits by Chinese leaders and media to our shores, wowed by loads of Irish hospitality (whether a caman, sliotar, bodhran, uilleann pipes, Irish coffee, Guinness, visits to Irish farms), intertwined with stunning rustic backdrops, a clear understanding of what Ireland has to offer as world-class centre of excellence in sciences, software and telecoms, financial and education services, and in terms of investment and Euro Zone access opportunities for Chinese companies: All aimed at ensuring their visits to Ireland will be in their minds for a very long time when they return home to China.

Source: http://www.accuratelimited.com/blog.view.php?id=+8G9kXqGg28=

Chinese Government officials relaxing at O'Donoghue's Pub Merrion Row Dublin - Accurate Group - Ireland China Business Consultancy

Niall O’Reilly

Managing Director, Accurate GroupIreland China Product & Business Development (Export Source Import) Advisers

Tel: +353 1271 1830 / +86 152 5719 4468

http://www.accuratelimited.com

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Filed under Accurate China Insight, China, China Ireland, Economy, European Union (EU), Ireland, trade

Accurate China Insight: ‘China’s business gateway to Europe’ – Is Ireland’s idea of ‘China Engagement’ self-deluding?

The future success of Ireland's China engagement policy lies in embracing bold initiatives that stand out from the crowd.

The future success of Ireland’s China engagement policy lies in embracing bold initiatives that stand out from the crowd.

In light of the growing realisation, as highlighted in Eddie O’Connor’s (Founder of Mainstream Renewable Energy) opinion piece in the Irish Times, dated 7th October, http://www.irishtimes.com/newspaper/opinion/2011/1007/1224305386447.html that over the next decade China is likely to present more business, educational, and tourism opportunities for Ireland than any other country, is it not the case that we are seriously deluding ourselves into thinking China will provide such economic deliverance unless our policy makers embrace a new radical approach to engaging China?

Bearing in mind every other country in the western world is courting China’s Yuan currency, how about each government department being directed to devise a five-year plan regarding how best to position Ireland as China’s gateway to Europe? A junior minister with a special portfolio covering China would be responsible for monitoring the plan’s implementation.

In the meantime, while waiting for Chinese companies to make the investment decisions we see as so vital to our future, the Government should also consider practical initiatives aimed at making China market entry easier for our small and medium-sized businesses.

For instance, a feasible and cost effective approach for small and medium-sized businesses, involving a sharing of incubation office, administrative, legal, financial and logistical resources, would be the construction of a Government supported IDA-style ‘Irish business park’ on land leased from one of many enthusiastic municipal or provincial governments in China. Such a valuable enterprise could be carried out under the auspices of a public/private partnership, with special tax breaks offered to encourage Irish businesses to establish their offices. There is a prescient: In the mid-1990s Singapore leased land from the Suzhou Government to build what is now a key gateway to China for Singapore businesses: The Suzhou Industrial Park.

The future success of our China engagement policy lies in embracing bold initiatives that stand out from the crowd.

Niall O’Reilly

Accurate Ireland – China Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com

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Filed under Accurate China Business Services, Accurate China Insight, Accurate Group, China Ireland, Economy

UCD ALMA MATER MAGAZINE No.6 1995 – Our Man in Hong Kong

“Niall O’Reilly BA ’88, planned to sojourn in China for one year and then return to Ireland. Six and half years later, he is still living in Asia. Subsequent to his graduation, the Chinese Government awarded him a scholarship to study Chinese Mandarin language at a University in Beijing [Beijing Language Institute].

Despite the ‘Tiananmen Massacre’, which provoked a hasty departure, Niall returned for a second year, this time armed with both a second Chinese Government scholarship and additional bursaries from the Jefferson Smurfit Foundation and the Industrial Development Authority of Ireland.

UCD ALMA MATER MAGAZINE No.6 1995 - Our Man in Hong Kong

Upon completion of his studies in China, Niall worked for the IDA in Taiwan, before relocating to Hong Kong in 1991 to take up a position with ResearchAsia Ltd, the leading information technology market consulting company in Asia. While with ResearchAsia, he has lived in Singapore, Malaysia and Thailand.

UCD ALMA MATER MAGAZINE No.6 1995 - Our Man in Hong KongIn November 1994, he joined Dataquest Asia Pacific (Hong Kong) Ltd, a company of the Dun & Bradstreet Corporation, as a Regional Industry Analyst for Asia Pacific.

Niall is also a director of two companies. One company sources consultants, financing and investors for private enterprise and public projects in Kazazhstan, while the other aims to assist Irish companies seeking to penetrate the burgeoning markets of Greater China, Hong Kong and Taiwan. He is also the Chapter President of the UCD Alumni Association in Hong Kong.”

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Filed under 1995, China, Dataquest, Hong Kong, Ireland, Niall in the News, Niall O'Reilly, ResearchAsia, Thailand, Tiananmen Square Massacre, Travel, University College Dublin